OPEC+ Completes Oil Production Cut Rollback with September Hike

The OPEC+ coalition has finalized its rollback of oil production cuts, increasing output for the sixth consecutive month. The group's seven core members, Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman, agreed to raise their collective output by 188,000 barrels per day starting in September. This move brings an end to the gradual reversal of a 1.65 million barrel-per-day reduction first introduced in 2023.

The additional cuts totaling roughly 2 million barrels per day, introduced by the broader OPEC+ group in 2022, will remain in place through the end of the year. However, supply disruptions in Russia, Kazakhstan, and the Gulf region due to conflicts with Iran and Ukraine have meant that much of the increased output has not reached markets.

OPEC faces its next challenge in determining whether to unwind further cuts or maintain current production levels. The group's communiqué was silent on this direction for the final three months of the year, leaving uncertainty surrounding future policy decisions.